Armington elasticity


Armington elasticity

An Armington elasticity is an economic parameter commonly used in models of consumer theory and international trade. It represents the elasticity of substitution between products of different countries, and is based on the assumption made by Paul Armington in 1969 that products traded internationally are differentiated by country of origin.

The Armington assumption has become a standard assumption of international CGE models. These models generate smaller and more realistic responses of trade to price changes than implied by models of homogeneous products [Deardorff's Glossary of International Economics [http://www-personal.umich.edu/~alandear/glossary/] ] .

References

Armington, Paul, 1969, "A Theory of Demand for Products Distinguished by Place of Production", International Monetary Fund Staff Papers, XVI (1969), 159-78.


Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Armington — as a personal name can refer to: *Mariano Laya Armington *Paul Armington, economistArmington as a place name can refer to: *Armington, IllinoisArmington as an economic term can refer to: *Armington elasticity …   Wikipedia

  • Constant elasticity of substitution — In economics, Constant elasticity of substitution (CES) is a property of some production functions and utility functions. More precisely, it refers to a particular type of aggregator function which combines two or more types of consumption, or… …   Wikipedia

  • Fonction de production CES — La fonction de production CES (Constant Elasticity of Substitution) est une forme particulière de fonction de production néoclassique introduite par Arrow, Chenery, Minhas et Solow en 1961[1].. Dans cette approche, la technologie de production… …   Wikipédia en Français

  • Computable general equilibrium — (CGE) models are a class of economic models that use actual economic data to estimate how an economy might react to changes in policy, technology or other external factors. CGE models are also referred to as AGE (applied general equilibrium)… …   Wikipedia

  • ICES Intertemporal Computable Equilibrium System — affects regional and world economies. The model has been developed at the Climate Change Modelling and Policy Research Programme of the Fondazione Eni Enrico Mattei – FEEM, a research institution in the field of sustainable development.… …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.